Navigating India's Unemployment Landscape

India is now the world's most populous country. But let's talk about the problems, in this case, unemployment that has arisen from exponential economic growth.

The recent CMIE report 2022 indicates that India's urban unemployment rate decreased to 7.93% in February from 8.55% the previous month, while the rural unemployment rate increased to 7.23% from 6.48%. India's overall unemployment rate rose to 7.45% in February from 7.14% in January.

According to the National Statistical Office (NSO), the unemployment rate for the July-September 2022 quarter was 7.2%, a decrease from the 7.6% rate in the previous quarter.

India's historically high unemployment rate is expected to further increase in the coming years. The OECD forecasts a quadrupling of India's jobless rate from 4% to 8% by 2022, even if the economy continues to grow. The estimate predicts that the unemployment rate, which was 6% in 2017, could reach 8.3% by 2022, leading to an additional 10 million unemployed individuals, bringing the total to 220 million by 2022. While the government expects 1 million more job vacancies in the same period, it acknowledges that this won't be sufficient to offset the population growth.

Unemployment remains a significant concern in India, displaying disparities across different regions and sectors. According to the most recent Bloomberg analysis, which references figures from the Centre for Monitoring Indian Economy (CMIE) for July, the national unemployment rate is projected to reach 7.95% as of July 2023. The table at the end of the article illustrates India's unemployment rate trend over the past decade.

So what has India done to tackle this problem?

The data on Employment and Unemployment is collected through the Periodic Labour Force Survey (PLFS) by the National Statistical Office (NSO), Ministry of Statistics & Programme Implementation (MoSPI) since 2017-18. The latest annual PLFS report for 2019-20 provides State/UT-wise details of the unemployment rate for individuals aged 15 and above.

The Government of India prioritizes employment generation and improving employability. It introduced the Aatmanirbhar Bharat package to stimulate businesses and mitigate the impact of COVID-19, comprising long-term schemes for self-reliance and job creation.

The Aatmanirbhar Bharat RojgarYojana (ABRY) launched in October 2020 incentivizes employers to create new jobs, especially amid the pandemic. It provides benefits through the Employees’ Provident Fund Organisation (EPFO) and has supported over 51.95 lakh beneficiaries.

The Pradhan Mantri Mudra Yojana (PMMY) offers collateral-free loans up to Rs. 10 lakh for self-employment, sanctioning 34.08 crore loans as of March 2022.

The Garib Kalyan Rojgar Abhiyaan (GKRA), operational for 125 days starting June 2020, generated 50.78 crore person-days of employment, benefiting returnee migrant workers and affected individuals in 116 districts across 6 states.

PM GatiShakti focuses on economic growth via infrastructure development in sectors like Roads, Railways, Airports, Ports, Mass Transport, Waterways, and Logistics, aiming to create substantial job and entrepreneurial opportunities.

The Government emphasizes areas like railways, roads, urban transport, power, telecom, textiles, and affordable housing. The Budget 2021-22 introduced Production Linked Incentive (PLI) schemes, projecting employment and output growth through multiplier effects.

Several initiatives like the Prime Minister's Employment Generation Programme, Mahatma Gandhi National Rural EmployementnGuarantee Scheme, Deen Dayal Upadhyaya Grameen Kaushalya Yojana, Deen Dayal Antyodaya Yojana - National Urban Livelihoods Mission, Make in India, Start-up India, Digital India, Smart City Mission, and others aim to generate employment opportunities.

Despite recent economic growth focus, India's unemployment rate has risen, particularly in urban areas. The manufacturing sector lost jobs while agricultural employment increased. Salaried jobs declined, with some entering the informal sector. The overall employed population slightly decreased even as young Indians entered the job market, challenging the demographic dividend narrative.

This information has been carefully curated from trusted sources such as The Indian Express, The New India Express, The Press Investigation Bureau, and The Ministry of Labour and Employment.